The Chinese MOFCOM approves, subject to equity divestiture, a proposed acquisition in electronic yarn clearers for automatic winders (Penelope / Savio Macchine Tessili)

On 31 October 2011, the Ministry of Commerce of the People’s Republic of China (“MOFCOM”) announced its eighth conditional clearance decision, approving the acquisition of Savio by Penelope subject to an equity divestiture. This is the third decision since the introduction of the AML to require equity divestiture (the previous two being Pfizer/Wyeth and Panasonic/Sanyo). The substance of the decision is not remarkable, since the merger would have led to a global monopoly. But the speed in which it was taken (only three and a half months from notification, and just under two months from acceptance of the notification as complete) will be welcome news to business, justifiably concerned by the typical length